Analyst: Powell may support the dollar in the short term if he remains cautious.

[Analyst: If Powell remains cautious, it may support the USD in the short term] Jane Foley, a forex strategist at Rabobank, stated in a report that if Fed Chair Powell remains cautious about rate cuts during his upcoming speech, speculators may close out previous short positions on the USD in the short term. Both the market and Rabobank expect the Fed to cut rates in September, reflecting a weakening labor market. However, Foley pointed out that Powell may still adopt a cautious stance on policy easing when he speaks at the Jackson Hole Central Bank annual meeting this Friday. This position could provide support for the USD in the short term. Nevertheless, Rabobank still expects the EUR/USD to rise to 1.20 by next spring, as the market anticipates further rate cuts in the future.